The 3 EMA Forex Trading Strategy
The 3 EMAS currency trading strategy is a very simple trend currency trading strategy that is based on 3 exponential moving averages (EMA).
Now, because this forex trading strategy involves 3 EMAS, it can be quite difficult to understand at the beginning (if you are a beginner currency trader), therefore, I suggest you read not only once, but 2- 3 times to fully understand and then consult the table below.
Let us begin.
Time frame: Any (but the suggestion to use frames of 15 minutes and more)
Currency pair: any
Indicators: 10 ema, 25 ema and 50 ema.
THE 3 RULES OF THE EMA FOREX NEGOTIATION STRATEGY:
1. Place a pending purchase suspension order 2-5 pips above the maximum of the candle that has a lower maximum than the previous candle after the 10 EMA crosses the 50 EMA upward.
2. If the next candlestick breaks the maximum of the previous candlestick, this pending purchase stop order will be activated. But if not, keep moving the pending pending purchase order pending above each new lower tall candle that is formed until the high is broken and the trade is activated.
3. Place your stop loss 2-5 pips below the minimum of the candle that has its maximum broken which then activated your purchase stop order. However, if there is a low point of close oscillation (support level), then it is better to use it also and place the loss stop a few pips outside the support level.
For the sale of
Place a sales stop order 2-5 pips below the minimum of the candle that has a higher minimum than the previous candle after the 10 EMA crosses the 50 EMA down.
If the next candlestick breaks the minimum of the previous candlestick, this pending sales suspension order will be activated. But if not, keep moving the pending sales suspension order below each new highest minimum that is formed until the minimum of the previous candlestick is broken and the trade is activated.
Place your stop loss 2-5 up below the maximum of the candle that has its maximum broken which then activated your stop order. However, if there is a high point of near oscillation (resistance level), then it is better to use it too and place the stop a few pips outside that level.
Here is a table that explains how to take the trade:
TAKE PROFITS
You can use the previous low swing levels as a profit target for a sales transaction
For the buying trade, use the previous high swing levels for your profit objective.
Or, another option is not to have a profit objective, but to use a trailing stop to place behind each lower swing (for a retail trade) as your trade moves in favor so you can get out of that trend while You can extract the maximum leaves the price swing until you get soaked. For a purchase transaction, do the exact opposite.
COMMERCIAL MANAGEMENT
One of the best forms of trade management is to stop behind the lowest swing highs (for a retail trade) or stop below the highest swing lows.
This allows you to make a profit as the trade moves in favor until your profit objective is reached or, if you do not have a profit objective, you can follow our trend to the point where it stops.
See the chart attached above for more clarity.
ADVANTAGES OF THE FOREX TRADE STRATEGY OF 3EMAS
A very simple forex trading strategy, easy to understand and use.
In markets with a strong trend, there is the possibility of obtaining large profits very quickly.
3 EMA STRATEGY IN ACTION
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